Study: Subscriptions instead of purchases – 85% of young adults would rather rent technology products than buy them

Vienna, November 03, 2021

Credi2’s recent study “Consumer Behaviour Rethought” shows that almost half of all customers between the ages of 18 and 34 no longer attach importance to owning products. Instead, the majority of young adults prefer subscription models with monthly payments. This allows them to be sustainable and technologically always up to date. For the study, Credi2 surveyed a representative sample of 1,000 Germans and Austrians.

Spending a lot of money on an expensive new tablet? This is not an option for the majority of consumers under the age of 35. “Nowadays it’s enough for most of them to use a product rather than owning it,” says Daniel Strieder, CEO and co-founder of Credi2. As many as six out of ten customers consider subscription models to be financially more attractive than buying the product.

Subscriptions keep customers flexible

What is appealing about subscription models to young adults is its flexibility. Seventy percent of those surveyed believe that this model allows them to remain more flexible financially and the possibility to quickly replace the product at the end of the term in order to remain up to date with the latest technology. “A customer who rents an expensive tablet pays low monthly installments, because the product is recycled at the end of the rental period,” confirms Daniel Strieder. “Subscriptions are therefore worthwhile for all products with a good resale value. Naturally, this applies to cars that are leased, but the model is also suitable for smartphones, notebooks, smartwatches, sports equipment and consumer electronics.”

Sustainability plays a significant role

In addition to flexibility, it is important to young customers to minimize the impact on the environment. 72% of those surveyed appreciate subscription models because retailers refurbish the products and then sell them second-hand. “By reselling the refurbished product, it can be used by several people. That makes the subscription model sustainable,” says the Credi2 CEO.

Improving customer loyalty and harnessing potential

“As the flexible use of products is trending, the demand for subscription models will continue to rise,” Daniel Strieder is certain. “With the option to rent products for a certain period of time, retailers can reach more customers and keep them.” Credi2, the Viennese specialist for “buy now, pay later solutions”, has already implemented subscription models for various technology retailers, enabling them to achieve additional upselling potential.

Here you can download the study “Consumer Behaviour Rethought”. 

About Credi2 GmbH

Credi2 specialises in embedded finance solutions for ‘buy now, pay later’ and subscriptions. The fintech enables banks, merchants and OEMs to offer modern sales financing solutions via the Credi2 platform. Customers include Volkswagen Bank, Raiffeisen Bank International and Apple. Credi2 has worked with these companies to launch innovative and highly successful payment solutions in a short period of time.  

The Vienna-based scale-up was founded in 2015 by Daniel Strieder, Michael Handler and Jörg Skornschek. In addition to the founding trio, the management team also includes Christian C. Waldheim and Jennifer Isabella Schimanko. Credi2 is a fast-growing fintech currently employing more than 90 people from all over Europe.